The rental one of the elements affected is the rise in inflation, which stood at 5.6% in November. The tenants that have an annual review this month will see their monthly rent increase about 40 euros or 480 euros per year. The average rent, which last month rose to 738 euros, would now rise to about 740 euros.
In the case of Barcelona, with an average rent of 903.3 euros, according to data from the statistics department of the Barcelona City Council, it would go to 953.5 euros. On Madrid, an apartment of about 80 square meters, which currently has an average monthly income of 1,184 euros, according to the Idealista real estate portal, would go to about 1,250 euros.
Urban lease law
According to the lhey of urban leases (LAU), to update the rental fee, there must be freedom of agreement between the landlord and the tenant, in contracts after 2013. In turn, it is determined that the maximum allowed to update the income is the CPI.
The law specifies that to calculate the new monthly rent the general CPI will be taken into account and not the one corresponding to the subgroup or category of housing. in this case, in November, the annual rate is 5.6%. This mechanism means that when the interannual rate was negative, the monthly rent had to be lowered, if the contract did not establish otherwise.
Related news
Since April 1, 2015, if the rental contract specifies that an annual price update will be carried out, but the method is not specified – which can be agreed between the parties, although in general it is usually the CPI- , the review will be made based on the latest published Competitiveness Guarantee Index. The last of these annual indicators is that of September, which was 0.67%, according to the National Institute of Statistics (INE). For contracts signed on or after March 6, 2019, this update will be limited to the annual variation of the CPI.
The new rental price after applying the update may be required from the tenant from the month following the written notification of the owner. In this communication, the percentage of rise applied must be detailed.
Reference-www.elperiodico.com